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Managing Delays in Construction Projects Aiming at Cost Overrun Minimization

Hubert Anysz 1

Published under licence by IOP Publishing Ltd IOP Conference Series: Materials Science and Engineering , Volume 603 , Issue 3 Citation Hubert Anysz 2019 IOP Conf. Ser.: Mater. Sci. Eng. 603 032004 DOI 10.1088/1757-899X/603/3/032004

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1 Warsaw University of Technology, Civil Engineering Department, Al. Armii Ludowej 16, 00-637 Warsaw, Poland

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The effects of the delay in construction contract execution are always negative for every party being involved. Cancelling the delays of the time schedule means the use of more production means that it was planned. It creates an additional cost. If the delays of the schedule are not cancelled, the contractor suffers from the cost increase. The penalties arisen from not keeping the milestones or the completion date are expected too. There is a trade-off: cancelling delays spending additional money now (during the contract execution) or executing a delayed contract till its end awaiting for its final settlement (showing the cost increase) and possible penalties. There is no one, correct answer how to manage a delayed construction project. There is a natural unwillingness to spend money over the budget. Nevertheless, the delayed completion date can cause much higher contractor's expenses, than cancelling delays during the contract execution. The decisions made by the project manager depend on various factors discussed in the paper. A delay concerning the single task increases the cost of its execution at a different level. The same, the level of influence of delaying a single task, influences the completion date with varied strength. These influences depend on the location of the task in a net model – the base of a schedule. The tasks located on the critical path – defined in the Critical Path Method – should be of the special care. However, delays on not critical tasks can also break the budget and the planned completion date. The nature of delay is important as well. Lowered productivity of a workers' brigade can make the execution of the task longer, the same as forced breaks in their efficient work. The reaction of a site manager to such causes of delay should be different, as the origin of the delays is different. The impact of the delay noticed on the single task is discussed in the paper and possible reaction (varied on the type of a delay and a task location too) are proposed. The proposed solutions aim at cost minimizing considering the total expenses spent by a contractor and possible penalties in case of the delayed completion date of a construction contract.

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Engineering, Construction and Architectural Management

ISSN : 0969-9988

Article publication date: 4 November 2019

Issue publication date: 6 April 2020

The purpose of this paper is to perform a quantitative analysis of the literature in order to determine the main causes of delay in construction projects.

Design/methodology/approach

A set of 47 articles from the literature were analyzed, yielding 1,057 different causes of delay. In order to analyze and compare the main causes of delay, their degree of impact was studied statistically. Next, a mention count method was used to determine the primary causes of construction project delays and through the use of Pareto diagrams, the main causes of delays in construction projects were determined.

It was determined that the three main causes of construction project delay are problems that occur during execution, administrative problems and labor conflicts; together they account for almost 80 percent of the causes found in the literature. Moreover, it was deduced that problems during execution are based on unpredictable events, while administrative problems are rooted in poor cash flow management. In addition, seven sub-groups of delay causes were identified as being major due to the number of mentions detected. These were “Changes during construction,” “Poor construction management,” “Construction errors,” “Economic/Financial,” “Conflict/Relationship” and “Lack of experience.”

Practical implications

This study provides a unique classification method, which was successfully validated, for the causes of construction project delay. Thanks to the classification, designers may use this information as a starting point for designing future construction projects, thereby minimizing the appearance of unforeseen events during construction. Moreover, the results of this study will help project managers be aware of the possible causes of delay that may affect their construction projects. This understanding can help them identify potential risks in the initial phases of the project and allow decisions to be made early before problems arise or the consequences of the deviations become irreparable. The results can also serve as input for the development of future management improvement methodologies that are aimed at reducing costs and ensuring that deadlines are met.

Social implications

Identifying the factors and causes of the delays will allow mitigation actions to be taken in order to avoid delays, which will ultimately allow homes, schools, hospitals and other necessary infrastructure to be delivered on time or even before the planned date.

Originality/value

This study provides a unique classification method that was successfully validated. Thanks to the classification, designers may use this information as a starting point for designing future construction projects, thereby minimizing unforeseen events during construction.

  • Design management
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Viles, E. , Rudeli, N.C. and Santilli, A. (2020), "Causes of delay in construction projects: a quantitative analysis", Engineering, Construction and Architectural Management , Vol. 27 No. 4, pp. 917-935. https://doi.org/10.1108/ECAM-01-2019-0024

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Authors: Viles, Elisabeth 1 ;  Rudeli, Natalia Carolina 2 ;  Santilli, Adrian 3 ; 

Source: Engineering, Construction and Architectural Management , Volume 27, Number 4, 2018, pp. 917-935(19)

Publisher: Emerald Group Publishing Limited

DOI: https://doi.org/10.1108/ECAM-01-2019-0024

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Keywords: Construction planning ; Design management ; Scheduling

Document Type: Research Article

Affiliations: 1: TECNUN School of Engineering, Universidad de Navarra, Pamplona, Spain 2: Agencia Nacional de Vivienda, Montevideo, Uruguay 3: Department of Civil Engineering, Universidad de Montevideo, Montevideo, Uruguay

Publication date: September 12, 2018

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Investigating The Causes Of Contractor-Related Delays In Construction Projects And Mitigation Proposal

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2023, International Journal of Progressive Sciences and Technologies (IJPSAT)

The study objective is to investigate construction contractor-related delay factors. In addition, the study aimed to identify the significant delay reasons related to the contractor as a major contributor to the delay in the execution of construction projects and propose mitigation strategies that contractors can implement. A literature review and PESTEL analysis were conducted on the studies published between 2020 and 2022. Thirty-five previous studies revealed twenty-five delay causes related to contractors. The identified causes were ranked according to the times they were reported in previous studies and further categorized into five management factors. In addition, this study proposes delay mitigation strategies to help contractors overcome delays related to their performance. Finally, the study recommends where future delay studies should focus on.

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